Stocks end down 3.07 percent as political noise rises

KARACHI: Stocks on Tuesday sharply fell more than three percent as political ructions continued to weigh on investments, while oil fall also dampened the sentiments, dealers said.

“Most index names across major sectors witnessed hammering, predominately from institutional investors,” Elixir Securities said in a report.  The KSE 100-share Index of Pakistan Stock Exchange shed 3.07 percent or 1,389.04 points to close at 43,899.45 points.

KSE 30-share Index also fell 3.11 percent or 727.03 points to end at 22,620.54 points. As many as 392 shares were active; of which 37 increased, 341 decreased and 14 remained unchanged. The ready market volume stood at 191.366 million shares as compared to 113.806 million shares a day earlier.

Topline Research, in a report, said the top five contributors to the index decline included OGDC (dropping 3.9 percent), Engro (slumping 4.3 percent), HBL (falling 2.4 percent), MCB (dipping 4.3 percent) and HUBC (3.6 decreasing). Together, they contributed 322 points to the index fall.

“The market came under pressure as a political party announced sit-in on August 16,” it said. “We believe weak external account numbers and fear of depreciation also remain a matter of concern for investors.”

Elixir Securities said 85 names closed in red out of which 37 closed at their respective lower price limits or fell more than four percent. Analysts said the market started on a weaker note and struggled for the direction in early hour with stocks seeing range-bound trading

Analyst Maaz Mulla at JS Global Capital said exploration and production sector closed in red as oil prices slid to three-week lows on a stronger dollar and concerns over a global supply glut.

Maple Leaf Cement was down 4.14 percent. The cement maker announced the issuance of right shares to raise funds for capacity expansion after the market close. The market was largely anticipating this.

Analysts expect the Index to find stable ground near the current levels. They don’t see any major recovery in days ahead as domestic politics remained a dampener and will keep any sharp upside in check.

Companies, reflecting highest gains, included Wyeth Pakistan up Rs65.3 to close at Rs2,298/share and Fazal Cloth that rose Rs6 to end at Rs169/share. Companies, with most losses, included Nestle Pakistan down Rs560 to end at Rs10,640/share and Phillip Morris Pakistan that fell Rs133.95 to close at Rs2,558.05/share.

Highest volumes were witnessed in Bank of Punjab with a turnover of 12.418 million shares.The share shed 55 paisas to close at Rs10.51/share. K-Electric was the second with a turnover of 12.25 million shares. It fell 24 paisas to end at Rs6.66/share. Azgard Nine was the third with a turnover of 9.85 million shares. It edged down Re1 to finish at Rs15.59/share.